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137 Aydin, B.; Unakitan, G Efficiency analysis in agricultural enterprises in Turkey: case of Thrace Region 137 Aydin, B.; Unakitan, G. Efficiency analysis in agricultural enterprises in Turkey: case of Thrace Region Recebimento dos originais:02/11/2017 Aceitação para publicação: 17/052018 Başak Aydın (Corresponding author) PhD in Agriculture Economics Institution: Atatürk Soil Water and Agricultural Meteorology Research Institute Address: Atatürk Soil Water and Agricultural Meteorology Research Institute, 39100, Kırklareli, Turkey E-mail: [email protected] Gökhan Unakıtan PhD in Agriculture Economics Institution: Namık Kemal University Address: Namık Kemal University, Faculty of Agriculture, Department of Agricultural Economics, 59030, Değirmenaltı, Tekirdağ, Turkey E-mail: [email protected] Abstract This research was conducted via surveys applied to agricultural enterprises of Edirne, Kırklareli, Tekirdağ provinces in order to determine the efficiency of the agricultural enterprises of the Thrace Region. The enterprises were ranked with respect to their sizes and divided into three strata, including 1-50, 51-200, and 201 decares and above. In accordance with this stratified random sampling method, number of the surveyed enterprises was determined as 169. The average size of the surveyed enterprises was found to be 117.49 decares. The active capital based on the average of enterprises was determined as 621052.29 TL. Vegetative gross output value, animal gross output value, variable costs and fixed costs were found as 32929.42 TL, 23895.80 TL, 30288.35 TL and 20331.77 TL, respectively. Coefficients of technical efficiency, allocative efficiency and economic efficiency were determined and they were found to be higher in the third group enterprises than those for the other groups. Based on the average of the enterprises, technical efficiency, pure technical efficiency, scale efficiency, allocative efficiency and economic efficiency were computed as 0.66, 0.84, 0.78, 0.89, and 0.75 respectively. Based on the results of the Tobit modeling, the education period of the farmers, the size of the family, income from nonagricultural activities, the number of agricultural organizations which they join were determined to have a negative effect on the economic efficiency whereas the land size, the presence of livestock and irrigation amount were evaluated to have a positive effect. Key words: Agricultural Enterprise, Data Envelopment Analysis, Efficiency Custos e @gronegócio on line - v. 14, n. 2, Abr/Jun - 2018. ISSN 1808-2882 www.custoseagronegocioonline.com.br Efficiency analysis in agricultural enterprises in Turkey: case of Thrace Region 138 Aydin, B.; Unakitan, G. 1. Introduction Agriculture sector contributes to economic development in terms of transferring capital and labor to other sectors and supplying raw materials and crop requirement. Nowadays, increasing of global warming and decreasing of the water sources increases the importance of agriculture sector. Increasing the efficiency and productivity of agriculture sector is very important for existing among the countries which are self-sufficient in international competition and food area. The main purposes of agricultural production are to strengthen the agricultural enterprises and increase the contributions to national income by increasing the disposable income level of the farmers and to increase the production amount and productivity of the enterprises by providing the efficient and compatible usage of soil, climate, water, plant and human labor sources. In each production activity, providing the low-priced production factors and usage in optimum level increases the yield and decreases the costs. The producers cannot use the agricultural production factors in optimum level due to the insufficient business capitals and technical lack of information. For this reason, researches which introduce the input usage levels are required (Gundogmus, 1997). Nowadays, increment of agricultural production has become important in developed countries as well as the reduction of production costs. Therefore, reduction of production costs comes first for the enterprise managers and the policy makers. Obtainment of the effective usage of the production factors and reduction of the costs will contribute the optimum usage of natural resources and increase the sustainability of the enterprises. For this reason, all agricultural inputs which are efficient in sustainable usage of natural resources and important for the reduction and input and energy costs, must be used efficiently. Considering the substantial external dependence of many agricultural inputs, optimum usage of these inputs becomes more important. Optimum input usage can only be possible by the determination of the efficiency at enterprise level. Efficiency analysis are especially important in countries like Turkey, where economy is based on agriculture. In Turkey, 23.3% of working population is being employed in the agriculture sector and there are nearly three million agricultural enterprises. In countries like Turkey where agriculture is an important sector, as studies regarding efficiency enable the existing resources to be used in an optimum way without requiring for Custos e @gronegócio on line - v. 14, n. 2, Abr/Jun - 2018. ISSN 1808-2882 www.custoseagronegocioonline.com.br Efficiency analysis in agricultural enterprises in Turkey: case of Thrace Region 139 Aydin, B.; Unakitan, G. production inputs to be increased or for the technology to be improved, they bear significant importance. Especially in the process of full membership in European Union, there are a lot of works to be done with regards to Turkish agriculture. By enabling effective usage of resources in agriculture, agricultural returns could be increased and the sector could become more competitive. (Kacira, 2007). Thrace Region, which is in European part of Turkey, has a significant agricultural potential. Thrace Region is in the northwest of Turkey within 400 and 420 north latitudes and 260 and 290 east longitudes and includes Edirne, Tekirdağ and Kırklareli provinces. It is a significant agriculture region in Turkey due to the reasons such as soil structure and geographic conditions. The sufficient amount of land for agriculture is 1 002 223 ha and 965 910 ha of this land is planted. The most significant crops in the region are wheat, sunflower and rice and 55- 60% of rice production, 60-65% of sunflower production and 10-15% of wheat production in Turkey are obtained in Thrace Region (Erdem, 2012). This study includes the agricultural enterprises in Thrace region as the efficiency and productivity of many crops are in high level in this region. Whether organizations realize their activities in an effective way or not, the degree of their efficiencies, or the level of efficiency are important particulars to be revealed. Because, according to the efficiency level and in accordance with its direction, outcomes would be obtained and recommendations could be made. The main purposes of this study are to determine the technical, allocative and economic efficiencies of the enterprises by data envelopment analysis method and to analyze the effective factors on economic efficiency. Besides, some suggestions have been made in consideration of the results. Various researches were conducted on efficiency analysis in agriculture. Mao and Koo (1997) used data envelopment analysis (DEA) approach to analyze total factor productivity, technology, and efficiency changes in Chinese agricultural production from 1984 to 1993. Technical progress was mostly attributed to Chinese agricultural productivity growth after the rural economic reforms. Shafiq and Rahman (2000) determined the technical and allocative efficiencies of cotton farms in Punjab State in Pakistan. The use of DEA showed that the technique provided a clear identification of both the extent and the sources of technical and allocative inefficiencies in cotton production. Binam et al (2004) estimated technical efficiency among small holder farmers in the slash and burn agriculture zone of Cameroon and identified Custos e @gronegócio on line - v. 14, n. 2, Abr/Jun - 2018. ISSN 1808-2882 www.custoseagronegocioonline.com.br Efficiency analysis in agricultural enterprises in Turkey: case of Thrace Region 140 Aydin, B.; Unakitan, G. sources of inefficiency using detailed survey data obtained from 450 farmers over 15 villages throughout 2001/2002 growing season. The mean levels of technical efficiency were 77%, 73% and 75%, respectively, for groundnut monocrop, maize monocrop and maize–groundnut farming systems. Dhungana et al (2004) measured the economic inefficiency of Nepalese rice farms using data envelopment analysis. Economic, allocative, technical, pure technical and scale inefficiencies were determined as 0.34, 0.13, 0.24, 0.18 and 0.07 respectively. The significant variations in the level of inefficiency across sample farms are attributed to the variations in the ‘use intensities’ of resources such as seed, labor, fertilizers and mechanical power. Johansson (2005) estimated technical, allocative, and economic input efficiency scores for an unbalanced panel of Swedish dairy farms, using data envelopment analysis (DEA) and the stochastic frontier approach (SFA). By comparing the results it was concluded that when the entire dairy farm is studied the DEA is more appropriate to use since it does not require any particular parametric form to be chosen. The average DEA technical, allocative and economic efficiency indices were eventually
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